Karachi: Indus Motor Company Ltd. (INDU) has reported a decline in profitability for the fourth quarter of fiscal year 2026, citing a decrease in sales as the primary factor. The company announced a net profit after tax (NPAT) of 6.1 billion Pakistani Rupees, or 77.7 Rupees per share, a decrease from 6.5 billion Rupees, or 82.1 Rupees per share, in the same period last year, marking a 5% year-over-year drop.

According to AKD Securities Limited, the company's revenue fell by 4% year-over-year to 66.8 billion Rupees from 69.6 billion Rupees. This decline is attributed to a 4% decrease in sales volumes, with 11,333 units sold compared to 11,775 units in the same period last year. The results fell short of expectations due to lower-than-anticipated gross margins, which contracted to 10.3% from 13.3% in the same period last year. This contraction was likely due to a change in accounting treatment, with certain distribution expenses reclassified to the cost of goods sold. Without this adjustment, normalized gross margins are estimated at 12.2% for the quarter.

In addition to the earnings report, Indus Motor Company announced a final cash dividend of 47.0 Rupees per share, bringing the full-year cash payout to 195.0 Rupees per share.